Armadale Capital Plc (ACP.L) Updated Mine Plan Materially Increases Production

Armadale Capital plc (LON: ACP), the AIM-quoted investment group focused on natural resource projects in Africa, is pleased to provide details of further improvements to the Mine Schedule for the Mahenge Liandu Graphite Project (‘Mahenge’ or ‘the Project’) in south-east Tanzania.

Which was completed by experienced graphite specialists BatteryLimits. Following completion of an updated Mine Schedule using a higher-grade cut off of 9% TGC and a higher strip ratio of 1.95:1, and a revised expansion schedule, the Company is pleased to announce an increased production profile, increasing the average annual output to 109ktpa of concentrate over life of mine, which is a 30% increase on the recently completed Definitive Feasibility Study (‘DFS’).


  • Completion of an updated Mine Schedule using a higher-grade cut off of 9% Total Graphitic Carbon (‘TGC’), a higher strip ratio of 1.95:1, revised expansion schedule and includes a proportion of high-grade Inferred material
  • 30% increase in average annual production of large flake high-purity graphite to 109ktpa compared to recently completed DFS
  • Higher overall production from increased cut off of 9% TGC will materially increase annual production and has potential to significantly increase the US$358 million project NPV with minimal impact on the capex
  • A higher-grade cut off is expected to allow the Company to maximise initial production and build lower grade stockpiles in subsequent years
  • Updated Feasibility Study based on updated Mine Schedule anticipated by the end of May
  • Production profile planned to take advantage of increasing demand for graphite as the Electric Vehicle market rapidly expands

Armadale Chairman, Nick Johansen, commented: “The updated mine schedule demonstrates the exceptional potential of the Mahenge Liandu Graphite Project. The use of a higher-grade cut off and mining of a higher-grade material at an increased pace leaves significant scope for the Project to produce higher volumes of graphite over the 15 year mine life at a higher EBITDA margin, thus enhancing its overall near-term upside.

“The Project has a relatively long life of mine, low cost of production and has now been significantly de-risked at a time of rapidly increasing demand for large-flake graphite. As such it represents an attractive opportunity for investors who wish to gain exposure at a crucial inflection point in its development.

“The detail from the recently completed Mine Schedule desktop studies is in the process of being worked into an upgraded Definitive Feasibility Study, which will be based upon a throughput of higher-grade material over a 15 year mine life, and we are expecting that it will have a significant impact on the results.

“In addition to this work, multiple workstreams are currently in progress including continued Detailed Design Engineering, the progressing of existing off-take agreements from MoUs to binding agreements, finalising of the Company’s application for a full Mining licence (and thus furthering major permitting milestones), and crucially, advancing discussions with potential debt finance partners and project level development funding for construction.

“Having delivered a number of key value accretive milestones in recent months, we look forward to maintaining this momentum in the near term in order to continue to build value for shareholders.”

Full update

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